Cabela's 2007 Annual Report Download - page 75

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
On September 19, 2007, we entered into an unsecured revolving credit agreement for $14,933 ($15,000 Canadian)
in conjunction with the acquisition of the net assets of an outdoors specialty retailer located in Winnipeg, Manitoba.
Interest is variable, computed at rates as defined in the agreement, plus a margin, and payable monthly. At December
29, 2007, the interest rate was 5.60%.
The $325,000 credit agreement was previously amended eliminating certain limitations regarding pay downs
of revolving loans advanced; therefore, advances made pursuant to this credit agreement are classified as long-term
debt. The credit agreement for our Canada operations is also classified as long-term debt.
We also have financing agreements that allow certain boat and all-terrain vehicle merchandise vendors to
give us extended payment terms. The vendors are responsible for all interest payments, with certain exceptions, for
the financing period and the financing company holds a security interest in the specific inventory held Cabela’s.
We record this merchandise in inventory. Our revolving credit facility limits this security interest to $50,000. The
extended payment terms to the vendor do not exceed one year. The outstanding liability, included in accounts payable,
was $7,988 and $9,829 at the end of 2007 and 2006, respectively.
12. SHORT-TERM BORROWINGS OF FINANCIAL SERVICES SUBSIDIARY
At December 29, 2007, the principal amount of $100,000 is outstanding under a variable funding facility credit
agreement entered into by WFB. This facility is secured by a participation interest in the transferor’s interest of the
Cabela’s Master Credit Card Trust. The facility limit was entered into on June 21, 2007, for $50,000, and was increased
to $100,000 on November 29, 2007. The facility carries a liquidity fee of 0.15% on the outstanding commitment and a
program fee of 0.10% on the principal amount outstanding. The interest rate on the facility is based upon the interest
rate for commercial paper issued by the lender and was 5.11% at the end of 2007. The weighted average interest rate
was 5.31% during 2007. The credit agreement expires on June 20, 2008.
WFB has an unsecured federal funds purchase agreement with a financial institution. The maximum amount
that can be borrowed is $25,000. All federal funds transactions are on a daily origination and return basis. Daily
interest charges are determined upon mutual agreement by the parties. There were no amounts outstanding at the
end of 2007 and 2006.
WFB also has an unsecured federal funds purchase agreement with another financial institution. The maximum
amount that can be borrowed is $60,000. The interest rate for the purchase agreement is based on the current federal
funds rate. There were no amounts outstanding as of December 29, 2007, and at December 30, 2006, there was $6,491
outstanding at 5.75%.
13. LONG-TERM DEBT AND CAPITAL LEASES
Long-term debt and capital leases consisted of the following at the years ended:
2007 2006
Unsecured revolving credit facility expiring June 30, 2012 ....................... $ 50,576 $ —
Unsecured senior notes due 2008-2009 with interest at 4.95% .................... 50,000 75,000
Unsecured notes payable due 2016 with interest at 5.99% ........................ 215,000 215,000
Senior unsecured notes payable due 2017 with interest at 6.08% .................. 60,000 —
Unsecured revolving credit facility for Canadian
operations expiring June 30, 2010 .......................................... 7,447 —
Capital lease obligations payable through 2036 ................................. 13,939 13,948
Other long-term debt ......................................................... 6,423 7,434
Total debt ................................................................ 403,385 311,382
Less current portion of debt .................................................. (26,785) (26,803)
Long-term debt, less current maturities ..................................... $376,600 $284,579